Ammonium Sulphate Shortage in Gujarat – April 2025...

Ammonium Sulphate Shortage in Gujarat – April 2025 Ammonium sulphate ((NH₄)₂SO₄) is a key fertilizer and industrial chemical used in agriculture, textile, and chemical manufacturing. In April 2025, Gujarat is facing a shortage, leading to price volatility and supply chain disruptions. 1. Causes of Ammonium Sulphate Shortage in Gujarat 🔹 Increased Agricultural Demand: The pre-Kharif season (March–May) sees a surge in demand from farmers using ammonium sulphate as a soil conditioner and nitrogen source. Government support for balanced fertilizers is increasing ammonium sulphate use over urea. 🔹 Reduced Production & Supply Issues: Gujarat houses major fertilizer and chemical manufacturers like GSFC, GNFC, and private players, but raw material constraints (ammonia & sulphur) have slowed production. Some domestic manufacturers are diverting ammonium sulphate for industrial use (textiles, water treatment), further straining fertilizer supply. 🔹 Import Dependency & Price Volatility: India imports ammonium sulphate from China, Japan, and Europe. Global supply chain disruptions and high freight costs have reduced import volumes. China’s export restrictions on fertilizers have added to the shortage. 🔹 Logistics & Transportation Bottlenecks: Port congestion at Kandla & Mundra ports in Gujarat is delaying fertilizer imports. Rising fuel prices are impacting transportation costs. 2. Impact of the Shortage 📌 Price Surge: Gujarat Price (April 2025): ₹13, 500/MT (Earlier ₹11, 800/MT) – Increase of ~15% India Average Price: ₹12, 800/MT – Gujarat prices are higher due to local scarcity. 📌 Delayed Availability for Farmers: Limited stock in agriculture supply chains, affecting farmers during the critical sowing period. Government intervention expected to stabilize supply. 📌 Industrial Impact: Textile & chemical industries may face costlier raw materials, increasing production costs. 3. Possible Solutions & Government Actions ✔️ Increased Imports: The Indian government may increase ammonium sulphate imports from Russia & Indonesia to balance supply. ✔️ Production Boost: Domestic manufacturers like GSFC & RCF are expected to ramp up production by mid-2025. ✔️ Subsidy Adjustments: Possible government fertilizer subsidies or stock release from buffer reserves to stabilize prices. 4. Conclusion Gujarat’s ammonium sulphate shortage in April 2025 is driven by high agricultural demand, limited production, import disruptions, and logistics issues. Prices have spiked by ~15%, impacting farmers and industries. Government intervention and improved supply chain logistics are expected to ease the shortage in the coming months.